December 10, 2009
John Paulson has done an about-face since his very bearish position last year. First it was the reflation trade, now it is full blown bullishness. In a presentation earlier this week, Paulson said he still finds the equity markets very compelling and currently has no short positions in the credit markets – where he made a killing shorting sub-prime in 2008. Paulson said:
Today our net long exposure is perhaps the highest it has ever been in our portfolio. We still find a lot of compelling long investments on the equity side.
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December 9, 2009
The Euro continued its sell off in Wednesday’s early trade, taking the pair down to 1.4667 prior to a recovery back to the 1.4720 area. Sell stops under the 1.47 put pressure on the market, but there was some apparent short covering after the get me out orders were filled.
Yesterday, credit rating changes in Greece played a role in the Euro’s weakness, and today, Standard and Poor’s negative assessment of Spain’s economic recovery continues to demonstrate the weakness of the South Europe’s economies. Market Watch commented: "Spain is struggling with the worst downturn in decades, fueled by a collapse of the construction industry. The country has the highest rate of unemployment in developed Europe and higher than many emerging European countries."
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